2015 Half Time Report
We are now over half way through 2015, so where are we?
Given that the June LMG was standing room only, clearly a lot of people are interested in knowing where we are, at least in terms of CSRP and PPL, which were the topics at the June forum.
The inefficiencies that we all know exist in the market were repeated, just in case we had forgotten them. I was pleased to see that under the heading of ‘fragmented’ was the issue of ‘data and intelligence across the cluster not utilised’. This is a big lost opportunity in my view. Take ECF as an example, there is a wealth of untapped data (mostly unstructured) that could significantly assist the market to compete; there should be initiatives to unlock this potential in market databases and also new initiatives to share data. I have made the point before that sharing data does not remove competitive advantage – that will always come from how you analyse the data and the business decisions you make.
The TOM is now in place, which is intended to streamline processes and remove the burden placed on London Market participants. I think the TOM is pure common sense
Shared services have been identified – including centralised data capture and management – which should help to alleviate current issues such as matching a TA to a contract. Yes, believe it or not, that remains an issue for e-accounting!
One of the benefits for carriers is access to a central data store from which they can perform MI. It is not clear to me whether that MI will be designed centrally (as the ECF reporting is) or whether the data will be accessible for carriers to generate their own value add – I hope it is the latter. It makes sense for the market to collect data which will give it a competitive advantage but I would like to see it made available to carriers for them to decide on how to analyse it.
On placing we were informed that Placing Platform Limited’s mission is to be the key component in the delivery of the LMG’s future placing vision, in which face to face negotiation is supported and facilitated by electronic risk capture, placing, signing and closing. Even though there have been a number of failed placing initiatives, this PPL initiative must succeed. It plays a key role in the digitisation of the market and if we can get it right will be a major competitive advantage for London.
One great comment put up was “It is not that London is terrible in infrastructure and service, it is that the whole industry is terrible, there is an opportunity for London to take the lead here and really harness the power of shared services“. Couldn’t have put it better myself.